Preheat the oven to 325 degrees F. Spread the coconut on a baking sheet and toast until lightly browned, about 4-5 minutes. Watch it closely as it can burn.
In a small sauce pan, combine the toasted coconut flakes, coconut milk and vanilla. Cook over a low heat for about 30 minutes, stirring occasionally. Place a fine mesh sieve over a heatproof metal or glass bowl. Pour the coconut milk mixture through the sieve, pressing down with a spoon to extract as much milk from the solids. Let the coconut milk cool and discard the solids. Stir the honey, lime juice and salt into the strained milk.
Refrigerate until it's cold, at least 4 hours or overnight. Make sure the churning bowl for your ice cream machine is frozen before using! Place the mixture into the bowl of your ice cream machine (following the manufacturer's instructions) or you can use a freezer safe container. The ice cream can be kept frozen for up to two weeks. Garnish the ice cream with coconut flakes and lime zest. Makes 1 quart of ice cream.